Textile Ministry plans to improve industry

Chennai, July 17: The Ministry of Textile has drawn up a new strategy to improve the design, technology, production and exports of the textile industry across the country.

The strategy, included technology upgradation, scheme for integrated textile parks, technology mission on cotton and foreign direct investment.

"We have chalked out a vision statement for textile industry, including setting up of world class state-of-the-art manufacturing capacities to attain and sustain predominant global standing in the manufacture and export of textiles and clothing," Textile Commissioner J N Singh said.

"We have to facilitate Indian textile industry to grow at 16 per cent in value terms and to attain seven per cent share in global textile trade by the end of the Eleventh Five Year Plan," he said adding we should also equip the industry to withstand the pressure of import penetration and maintain dominant presence in growing domestic market." Stating that Yarn producers should integrate forward upto garments to improve their profitability, he said "This strategy carries the costs and risks of moving from commodity products to differentiated products but strengthens the companies against any temporary market fluctuation." He said large garmenting companies should integrate backwards till the weaving stage, which would enable them to emerge as bulk suppliers to global retailers.

While pointing out that the bigger companies should focus on strengthening their design and fashion capabilities, Mr Singh said designing capability must emerge on the radar of most Indian leading companies.

Just as Indian pharma companies have successfully enhanced their global strength by focussing on R&D, Indian textile companies should also strengthen their design capability and fashion forecasting, he added.

Depending upon their risk appetite, some companies could focus on building and distributing their own brands globally, which was a margin-high risk business but already progressive. Forward looking companies have started doing this even to the extent of buying several first-world brands, he said.

The Commissioner said the fibre production would increase to 8,352 million kg in 2011-2012, compared to 5,116 million kg production in 2006-2007. Apart from this, the yarn and fabric production rate would also go up to 11-12 per cent annually, he said adding the exports was also expected to touch US dollar 50 billion during 2011-2012, compared to the USD17.08 billion export during 2006-2007.

On the investment requirement to attain the projected figures, he said spinning and weaving sector should invest Rs 50,200 crore and 20,200 crore respectively during 2007-2012.

On the government strategy, Mr Singh said further investments must continue to be encouraged as also continuation of the Technology Upgradation Fund Scheme (TUFS).

He pointed out that the Finance Ministry had already announced that TUFS would continue in the 11th Five Year Plan.

Governments in PPP mode with the industries must invest heavily in training in the textile sector, which had the potential to provide four million jobs by 2012, he said.

"We are quite low by international benchmarks while Sri Lanka scores over us in garment productivity on an average basis." "Increasing automation and use of sophisticated computer tools is required for our leading players," he added.

UNI